Suppose That the Government Taxes Any Positive Return on an Asset

Suppose that the government taxes any positive return on an asset and allows a full deduction of a negative return against taxable income.Which statement is TRUE under this scenario,versus one under which there are no taxes?

A) These tax policies do not affect risk taking so long as the expected value of the investment is positive.
B) These tax policies increase risk taking.
C) These tax policies reduce risk taking.
D) These tax policies do not affect risk taking regardless of the expected value of the investment.